An odd item popped up in the tubes of the interwebs recently - an anonymous essay attributed only to the financial website called “TheStreet.com” that (apparently) was never actually distributed on TheStreet.com but rather was posted and distributed through the MSN Money personal finance and investing website.

The essay, titled “Consequences of Our Fragmented Energy Policy” makes the argument that the “New Federalism” which it defines as being “Ronald Regan’s vision for returning powers to the state governments” (to be fair they only misspell President Reagan’s name once, getting it right in later references) has led to chaos in our energy system.

The anonymous author believes that state efforts to reduce pollution from power plants are an example of how states are inexplicably raising energy costs and undermining efforts to build a coherent energy system.  But yet the author seems displeased that the FEDERAL Environmental Protection Agency is setting national standards to reduce dangerous pollution from power plants.  This last twist suggests that the author is fundamentally dishonest – they just don’t like the idea that coal fired power plants will be unable to continue to poison and kill with impunity as they done for generations and the whining about federalism and inconsistent state policies is a charade.

At the end of the day the fundamental error is to think that these coal-fired power plants will not retire as our power system makes the inevitable transition to cleaner and more efficient resources.  Of course they will – they are obsolete, dirty and inefficient.  The trick is going to be figuring out how to manage the transition.  Salem Harbor offers us a great example of how to do this – should ratepayers fork over special “reliability” payments to a polluting power plant in the range of $15 – $30 Million A YEAR or should their money be invested in a one time payment in transmission infrastructure, costing $50 to $75 Million, that will allow power from existing natural gas plants and wind to flow into Greater Boston.   And that doesn’t even take into account the very real health and environmental costs the plant inflicts – it doesn’t take wall street wizard to understand that keeping that power plant limping along is truly the bad deal for the people of Massachusetts.

(Photo credit: Marilyn Humphries)

One small step for man, one giant leap for coal–or lack thereof. Under pressure from public health groups, environmental organizations, political leaders and community members, Dominion Energy of Virginia has taken another important step toward closing Salem Harbor Station, its 60-year-old, coal-fired power plant in Salem, Massachusetts. Known as a “non-price retirement” request, the move represents an official request to the electric system operator, ISO New England, to allow the plant to shut down permanently.

Shanna Cleveland, staff attorney for Conservation Law Foundation (CLF), said, “Dominion’s actions put Salem Harbor Station on a path to shut down by 2014. Combined with its recent statements to shareholders that it doesn’t intend to invest any more capital in the plant, it is clear that Salem Harbor Station cannot operate profitably. The only issue remaining is whether the plant will shut down sooner than 2014. An unprofitable plant is still a polluting one, as long as it operates.” More >

Lori (now “Rep. Ehrlich”) continues in her role as the voice of reason and truth with regard to the Salem Harbor plant in an articulate op-ed in the Salem News in which she argues that by ignoring “unequivocal statement of closure” that the Salem News editorial voice is “‘shamefully out of sync with the plant owners and city elected officials who have begun to take important steps to accept and plan for the inevitable”.   Rep. Ehrlich notes that given Dominion’s own statements, the cost of keeping the plant limping forward and the planning for the future now underway that the time has come for collaborative problem solving, not finger pointing:

The ratepayer deserves better than the false choice of “plant or no plant.” Ratepayers have borne the burden of keeping this plant afloat for years and now are paying above-market rates to the tune of $20 million for the next two years to import and burn cheap coal here.

Dominion’s CFO made clear in his remarks at the Edison Electric Institute gathering that the company will not invest its dollars in this plant. Why should we invest ours? With a just transition, local businesses and tourism can be bolstered without ruining our health, killing workers and destroying our natural resources.

Private citizens and several brownfield developers are coming forward with creative and potentially lucrative development ideas. Any development will also enjoy the benefit of a 2002 $6-million cleanup of on-site contamination from unlined impoundment ponds. With a federally designated deepwater port, it’s not a stretch to imagine this 65-acre property hosting cruise ships or other types of maritime commerce.

There will no doubt be unique challenges transitioning this property. But it’s not the only coal plant in the country going by the wayside, just the oldest.

The Salem News and those naysayers who spend so much time and energy pointing out what cannot be done, need to change their tune and join Dominion, city and state leadership, and the air-breathing public, in imagining other possibilities.

Rep.  Ehrlich is doing what our leaders are supposed to do: she is leading. Specifically, she is leading us forward towards a cleaner and more prosperous future and is trying to do so in a manner that heals wounds, considers the values and needs of many communities and she is using honest, tough but civil language to build a real conversation about what needs to be done.

Photo credit: Marilyn Humphries

It may come as no surprise that Dominion Energy ‘s spokespeople don’t want to admit that Dominion’s  recent moves to “delist” Salem Harbor Station are signs that Dominion plans to shut the plant down (read recent statements here and here).  Dominion has been spinning stories about the plant to local audiences for years.  But apparently, Dominion CFO Mark McGettrick has no such trouble. At a financial conference at the Edison Electric Institute on November 2, McGettrick confirmed that the plant will shut down within five years. “We have announced that two of our coal plants will shut down in the future when the environmental rules are clear. The first is Salem Harbor in the Northeast. We’ve already tried to delist a few of those units, but the ISO has required the two biggest ones for reliability. But in the near future, certainly within this five year horizon, we would expect Salem Harbor plant to shut down. We will not be investing any capital for environmental improvements at Salem Harbor.”* No mincing words for McGettrick.

So there you have it. Salem Harbor is going to shut down within five years.  Dominion says it will not invest any more money in environmental improvements at the plant. So, if ISO-NE continues to find the plant is needed for reliability, who will pay the price for those improvements? Ratepayers. Specifically, the ratepayers who live in the shadow of this plant in northeastern Massachusetts. That’s why ISO-NE must act now to find an alternative to Salem Harbor Station.  CLF has stepped in to ask the Federal Energy Regulatory Commission to order ISO-NE to meet its responsibility, so that ratepayers can avoid these costs.  CLF will continue working to accelerate shutdown to prevent further damage to public health and the environment and to stop Dominion and ISO-NE from forcing ratepayers to prop up this polluting dinosaur of a plant that should have been closed years ago.

*Listen to the announcement via Google Finance
Clip can be found at 22:30